Argentine Prosecutor Targets LIBRA Memecoin Assets in Fraud Probe
Unraveling the LIBRA Memecoin Story
The world of cryptocurrency is full of exciting and sometimes surprising stories. One such story is the rise and fall of the LIBRA memecoin. This cryptocurrency became famous quickly, but then it crashed, leaving many people who invested in it with big losses. At the center of this story is Argentina’s president, Javier Milei, who endorsed the token and made it popular. Now, an Argentine prosecutor wants to freeze assets linked to this fraud, which is a big step in the case.
The LIBRA Memecoin: From Fame to Failure
The LIBRA memecoin was launched on February 14, 2025, as part of a project called “Viva la Libertad,” which aimed to support Argentine entrepreneurs[4]. However, its quick rise to fame was short-lived. After President Milei promoted it on social media, the token’s value went up very fast, reaching a market capitalization of $4.5 billion[3]. But then, something unexpected happened. People who were involved in creating the token started selling their shares, causing the token’s value to drop by over 96% within hours[5].
This sudden collapse is called a “rug pull,” which is a type of scam where the people who created the token suddenly stop supporting it, leaving investors with worthless assets[5]. The investigation found that the scammers used many wallets to buy tokens early and then sold them for a lot of money when the price was high[1]. This tactic, called “sniping,” allowed them to make money quickly before other investors could react[1].
Key Players and Allegations
The LIBRA scandal involves several important people, including Hayden Davis, the CEO of Kelsier Ventures, and Arunkumar Sugadevan, who is linked to many fraudulent projects[2]. Davis admitted to manipulating the token’s initial sale to make a profit, using secret information to buy and sell tokens quickly[2]. The investigation also found connections between the LIBRA and MELANIA tokens, suggesting that the scammers used the same tricks to create new scams[1].
President Milei’s involvement in this story is complicated. His endorsement of LIBRA made many people think it was a government project, which made its value go up before the insiders sold their shares[2]. Later, Milei said he had nothing to do with the project, but the damage was already done[4]. Some politicians have filed criminal charges against him, accusing him of tricking investors[2].
Legal Consequences and Asset Freezing
The prosecutor’s decision to freeze assets is an important step in making sure the people responsible for this scam are held accountable. More than 100 criminal complaints have been filed against Milei, with accusations of fraud and corruption[4]. International law firms are also organizing lawsuits on behalf of foreign investors who lost money[4].
The asset freeze is meant to stop the scammers from making more money and hiding it. It’s a crucial moment in the investigation, as authorities try to figure out the complex web of transactions and connections involved in the scam.
Conclusion: The Need for Accountability
The LIBRA memecoin story is a warning about the risks and problems in the cryptocurrency market. As the investigation continues, it shows the need for stricter rules and more transparency to protect investors from these kinds of scams. The decision to freeze assets is a step towards justice, but it also shows the bigger challenge of making sure people are held accountable in the crypto world.
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